How to Compare Unemployment Insurance

How to Compare Unemployment Insurance

Unemployment figures are rising, it seems as though no one can guarantee they will still be in employment in one or two months’ time. Naturally, even with no money coming in, household bills, mortgages or loan repayments still have to be met. This could mean serious financial hardship for many families, as even while in work, putting money aside for an emergency is often next to impossible.

For this reason, it is necessary to consider some form of income protection insurance. Like any other types of insurance, income protection comes in many different varieties. Some unemployment (or payment protection insurance, as it’s often referred to) policies will provide a monthly payment. This payment is usually a maximum of 50 per cent of the policy-holder’s usual salary.

Others can be taken out specifically to protect a single payment, such as mortgage or loan repayments. Every provider will have a different set of terms and conditions, cover amounts will vary and, of course, so will the premiums. Other variables to consider are  the time before the policy begins to pay out and how long it will pay out for.

This obviously makes it important to carefully compare unemployment insurance before signing with a particular provider. Comparison sites make it easier to find different providers and obtain relevant quotes.

Many people make the costly mistake to only look at the premium when comparing quotes. It is crucial to study all quotes you receive thoroughly – taking careful note of all small print, because this is where any potential exclusions will be found.

Being aware of these vital bits of information is of utmost importance, as they may make the difference between being adequately covered and receiving either less than you expected or nothing at all.

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